Embracer Group has agreed to sell Arc Games and Cryptic Studios, generating an expected net cash gain of $30 million. Arc Games is recognized for the Remnant franchise, while Cryptic Studios is known for developing Neverwinter and Star Trek Online.

The buyer, Project Golden Arc, Inc., is owned and managed by members of the current Arc Games leadership team. The acquisition is being funded by XD Inc., a global game developer and publisher listed on the Hong Kong Stock Exchange.

Embracer will keep the publishing rights for the Remnant franchise, which will be transferred to THQ Nordic. THQ Nordic already owns the Remnant intellectual property and its developer, Gunfire Games. Embracer will also retain rights to the online fantasy game Fellowship, published by Arc Games earlier this year. These assets will be included in the upcoming Coffee Stain Group spin-off, part of Embracer’s plan to divide into three independent, publicly listed companies.

• Chief Rebel, a Stockholm-based studio, will continue developing Fellowship with a team of about 35 people.
• Embracer CEO Phil Rogers stated that the transaction supports the company’s focus on strategic assets and core intellectual properties, while also improving profitability and cash flow.

Embracer has recently undergone significant restructuring, including layoffs and studio closures. Last year, the company announced it would split into three units: Asmodee, Middle-earth Enterprises & Friends, and Coffee Stain & Friends. The goal is to give each division its own leadership and strategic direction.

Earlier this year, Embracer confirmed plans to spin off Coffee Stain Group and rename its remaining business Fellowship Entertainment. Despite these changes, Embracer-owned studios have continued to reduce staff. For example, Crystal Dynamics recently announced its third round of layoffs this year, and Demiurge Studios reportedly let go of at least six employees in August.

According to Embracer’s 2025 annual report, the company reduced its workforce by 1,857 employees over the past year, following a restructuring program that had already resulted in about 1,400 job losses by the end of 2023. Embracer has told investors it will focus on targeted cost-saving measures and use AI technology to increase value. CEO Phil Rogers emphasized the importance of prioritizing quality and long-term value over short-term gains as the company transitions to its new structure.

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